STAND. COM. REP. NO. 1490

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 325
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 325, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to require that the directors
of managed care plans hold an unlimited license to practice
medicine in this State.

     The Hawaii Medical Service Association, University Health
Alliance, and Hawaii Medical Association presented testimony in
support of the measure.  The Hawaii Psychiatric Medical
Association, while not present, submitted supporting testimony.

     Your Committee finds that the responsibilities of health
plan medical directors include making determinations of "medical
necessity" or the appropriateness of proposed medical care, which
are decisions that involve clinical, medical judgments.  Further,
standards of medical necessity are generally established with
reference to accepted practices within the local medical
community.  Therefore, your Committee finds that medical
directors of health plans in Hawaii should be physicians licensed
to practice medicine in the State. 

     Your Committee is concerned, however, that the proposed
definition of "medical director" may be interpreted to include
medical professionals from outside the State who provide

 
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                                   STAND. COM. REP. NO. 1490
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consultation on local cases.  Accordingly, your Committee has
amended this measure by clarifying that a medical director is the
person who makes the final decision of medical necessity or
appropriateness. 

     Your Committee has further amended this measure by inserting
the contents of another health-related measure, S.B. No. 365,
S.D. 1, which establishes restrictions on the sale, usage, and
possession of laser pointing devices (LPDs).  Your Committee
finds that the improper use of LPDs can cause temporary or even
permanent vision impairment, therefore, posing a health and
safety risk to the public.  Accordingly, this measure, as
amended, bans the sale of laser pointing devices to minors,
prohibits the use of LPDs to harass another person or animal,
prohibits the possession of LPDs by minors, requires written
disclosure in LPD sales, and establishes penalties for violations
of the law. 

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 325, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 325, H.D. 2, S.D. 1, and be placed on the
calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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